A shares: why are institutions keen to let the market fall, short the stock market?


A share market why institutions are keen to let the market fall, that is, short the stock market, the biggest reason is the unreasonable setting of the short mechanism.In theory, European and American mature markets (please allow me to use the title of theoretical mature market here, because the a-share rule makers may not think so) generally restrict short selling in European and American stock markets. There are three main restrictions: 1. To short selling of foreign indexes, you must first sell the stock before you can short.2. In foreign European and American stock markets, short selling requires high commission charges, such as 20% commission charges for short selling.3. When a stock falls by more than 10% on the day, short selling is automatically prohibited within 3 days to avoid irrational acceleration of the decline.In contrast, the rules designed by Our country are conducive to the mechanism of unilateral short selling, so our country’s market can fall all the time, but institutions can also make money by short selling: 1. Stock index futures can be “naked short selling”, that is, short selling can be done without selling the stocks in hand.American stock you want to do short must sell the stock in your hand first, show that you really do not look good on the stock market, to do short.In our country, institutions and funds can arbitrage over and over as long as they hold a certain amount of stocks or margin.For example, to short U.S. stocks, you have to sell your shares in order to short them.On the surface it seems to be bad for the market, but in fact the short can only do it once!In order to short again, you have to buy back the stock in order to short again.And short A stock market, without selling the stock in hand, you can repeatedly short dozens of times hundreds of times.This shorting mechanism is N times more harmful than the mechanism of the US stock market.2, A share period refers to short selling and long handling fees, this is also extremely unreasonable, assuming that the parties want to index from 3800 to 4000, need to spend 4000 yuan, and the short side only need to spend 3800 yuan.The short side is clearly in favor.Whereas the shorting charge A 20% commission on stock market regulation, to 3800, you need to do first pay 20% commission on first, alone handling this piece, shorting out A times more than the bulls have, if coupled with the stamp duty, bears are not worth the cost, so I have to weigh on U.S. stocks do empty opportunity cost, and short period refers to A completely don’t have to worry about.To sum up, didn’t know that hundreds of years later than the European and American market A why don’t set the rules on the marketing, the rule to make for shorting the stock market, this may and A yellow card, the shares of the listed companies will only swells not hair fell, continuous rise A few days there will be ‘ ‘sympathy letter’ ‘, and continuous drop stop, will not be on the same token,Do you expect long-term growth in a market like this?# Stock market comment #

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